WARSAW, Poland – September 27, 2005 – Netia SA (“Netia”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, today announced that it received on September 26, 2005 a decision of the district court, dated September 21, 2005, on registration of the pledge on 30 (thirty) shares in Netia Mobile Sp. z o.o. with its seat in Warsaw (“Netia Mobile”) owned by Netia Ventures Sp. z o.o. with its seat in Warsaw (“Netia Ventures”), Netia’s subsidiary. The pledge was established based on the agreement on registered pledge on shares for the benefit of Novator Poland Pledge Sp. z o.o. in organisation with its seat in Warsaw (“Novator”) in order to secure the performance by Netia Ventures of the claims that may arise due to failure by Netia Ventures to perform certain obligations under the Shareholders Agreement (see Netia’s press release dated August 23, 2005). Maximum amount of collateral equals EUR 25,000,000 (twenty five million). The nominal value of said shares equals PLN 15,000 (fifteen thousand). The shares represent 30% of current share capital of Netia Mobile and authorize their holder to exercise 30% of votes at the shareholders’ meeting of Netia Mobile (increase of Netia Mobile’s share capital awaits the registration in the registration court). The above pledge was established on all shares in Netia Mobile currently held by Netia Ventures.
Novator Telecom Poland SARL (“Novator Telecom”) shall establish the pledge for the benefit of Netia Ventures on all shares held by Novator Telecom in Netia Mobile on the same terms as indicated above in order to secure the performance by Novator Telecom of the claims that may arise due to failure by Novator Telecom to perform certain obligations under the Shareholders Agreement.